Just keep watching. There will be more of those setbacks, so you should get used to it. Season 2 (Higurashi no Naku Koro ni Kai) will explain what is going on.

Edit: The games (yes, they are more than one) are made by 07th Expansion, who are know for their games revolving around restarting the story.
Edit2: Higurashi doesn't work like your average VN with multiple routes. You just finished watching the adaption of the first game, and are now watching the second one. There are no routes. Just multiple games following each other.